Claim of non-recovery of advances to employees/vendors as business loss was remanded back to AO. By Anand Gupta TaxGuru

Claim of non-recovery of advances to employees/vendors as business loss was remanded back to AO. Giving advance to the employees as well as vendors were essential and wholly and exclusively linked to the business of the assessee. Since AO had not examined the claim of deduction u/s 37(1) r.w.s. 28, it was deemed appropriate to restore the issue to the files of AO for de novo consideration.

from TaxGuru
via For More By Anand Gupta